Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Hub Group (NASDAQ: HUBG) and the best and worst performers in the air freight and logistics industry.
The growth of e-commerce and global trade continues to drive demand for expedited shipping services, presenting opportunities for air freight companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Despite the advantages of speed and global reach, air freight and logistics companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.
The 6 air freight and logistics stocks we track reported a strong Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 3.5% below.
In light of this news, share prices of the companies have held steady as they are up 3.7% on average since the latest earnings results.
Weakest Q1: Hub Group (NASDAQ: HUBG)
Started with $10,000, Hub Group (NASDAQ: HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.
Hub Group reported revenues of $915.2 million, down 8.4% year on year. This print fell short of analysts’ expectations by 5.7%. Overall, it was a softer quarter for the company with full-year revenue guidance missing analysts’ expectations.
“I am proud of the team’s performance in the first quarter as we remained focused on yield management, cost containment and operating efficiency initiatives, resulting in an operating income margin of 4.1%, a 40-basis point improvement over last year and a 20-basis point improvement over the fourth quarter. This included a 70-basis point improvement in our Logistics segment operating margins versus last year. Looking ahead we are focused on providing exceptional service and value to our customers while effectively managing our costs and investing in our business to deliver long term growth,” said Phil Yeager, Hub Group’s President, Chief Executive Officer, and Vice Chairman.
Hub Group delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 7.1% since reporting and currently trades at $35.50.
Read our full report on Hub Group here, it’s free.
Best Q1: Expeditors (NYSE: EXPD)
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Expeditors reported revenues of $2.67 billion, up 20.8% year on year, outperforming analysts’ expectations by 3.6%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.
Expeditors pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.7% since reporting. It currently trades at $116.
Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free.
FedEx (NYSE: FDX)
Sporting one of the largest air cargo fleets in the world, FedEx (NYSE: FDX) is a global provider of parcel and cargo delivery services.
FedEx reported revenues of $22.16 billion, up 1.9% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 10.1% since the results and currently trades at $221.13.
Read our full analysis of FedEx’s results here.
C.H. Robinson Worldwide (NASDAQ: CHRW)
Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ: CHRW) offers freight transportation and logistics services.
C.H. Robinson Worldwide reported revenues of $4.05 billion, down 8.3% year on year. This number came in 4.9% below analysts' expectations. Aside from that, it was a strong quarter as it logged an impressive beat of analysts’ EBITDA estimates.
The stock is up 12.3% since reporting and currently trades at $100.10.
Read our full, actionable report on C.H. Robinson Worldwide here, it’s free.
GXO Logistics (NYSE: GXO)
With notable customers such as Nike and Apple, GXO (NYSE: GXO) manages outsourced supply chains and warehousing for various companies.
GXO Logistics reported revenues of $2.98 billion, up 21.2% year on year. This print topped analysts’ expectations by 1.4%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates.
GXO Logistics scored the fastest revenue growth among its peers. The stock is up 8.6% since reporting and currently trades at $41.38.
Read our full, actionable report on GXO Logistics here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
